Exchange Rate: Direct and Indirect Quote, Foreign Exchange ...
www.toppr.com › guides › economicsThe quote is direct when the price of one unit of foreign currency is expressed in terms of the domestic currency. The quote is indirect when the price of one unit of domestic currency is expressed in terms of Foreign currency. Since the US dollar (USD) is the most dominant currency, usually, the exchange rates are expressed against the US dollar. However, the exchange rates can also be quoted against other countries’ currencies, which is called as cross currency.
Exchange Rates | Direct vs Indirect Quote | Spot vs Forward
xplaind.com › 792013Mar 23, 2019 · Direct quote is the foreign exchange rate quoted with the domestic currency in the denominator. It is called direct quote because it can be used to determine the units of domestic currency needed to buy or sell a foreign currency. Indirect quote is the foreign exchange rate quoted with the foreign currency in the denominator. It is the inverse of the direct quote. A direct quote can be converted to an indirect quote using the following formula: